Top Tweets for #Realestatebubble

"Distressed office sales are accelerating" Marc Calabria purchased 401 S. State St. in Chicago for $4M, 6% of its price of $68.1M in 2016. Asher Luzzatto bought the Denver Energy Center for $5.3M, 3% of its price of $176M in 2013. "Sellers are trading buildings at fire sale prices, desperate to escape their investments, the Wall Street Journal reported. Stubborn interest rates, declining values and hybrid work environments are driving down the market, though it’s also creating buy-low opportunities." "There were more than 200 sales of distressed office buildings last year, according to MSCI, up from 133 such sales in 2023. Trades of the properties through foreclosure processes or bankruptcy auctions totaled $5.2 billion." "The distressed office market appears to be accelerating. Through January and February, sales volume in the category hit $808 million, up nearly 25 percent year-over-year." -TheRealDeal #commercialrealestate

IIFL CAPS. Current Price: ₹265.85 (+2.21%) Timeframe: 1M (Monthly candles) Trend: A rising trendline (blue diagonal) from ~2020 lows, but price has broken below recent structure after hitting ~₹450 ATH Volume Profile: Heavy supply zone between ₹300–₹450, thin demand below ₹200 Key Levels: ₹178 (support), ₹106 (major floor) Bias: Bearish — price rejected hard from ATH, sitting near trendline support Tales of Financial War.

Hong Kong property slump deepens as commercial real estate decline strains banks. Banks scramble to reassess exposure as vacancy rates and refinancing risks pile up. Vacancies stood at 17.2%. One Causeway Bay’s completion introduced 440,000 sq. ft. of new space, offsetting the positive net take-up observed across existing properties. - Colliers Hong Kong’s financial sector and regulators have sounded the alarm that the property market is showing the most serious signs of a downturn since the 1997 Asian financial crisis. According to Bloomberg on the 18th (local time), with commercial real estate remaining a key pillar of Hong Kong’s economy, many bankers and property consultants said regulators widening their oversight to include small developers was a “sign of growing market anxiety.” -chosunbiz / realestateasia #CommercialRealEstate

Lawsuit accuses syndicator Alan Stalcup of “cooking the books”. Stalcup and his firm GVA gained prominence as a syndicator, compiling funds from individual and institutional investors to buy up and manage underperforming apartment complexes. “In 2023 alone, the GVA Defendants falsely overstated the reported rental income across its entire portfolio by over $20.6 million, which in turn served to inflate values of the properties in its portfolio by hundreds of millions of dollars,” plaintiffs wrote in their petition. GVA oversaw approximately 150 properties. In February, lender Benefit Street Partners alleged GVA misappropriated insurance proceeds and commingled tenant security deposits. Those “bad boy” acts activate the personal guarantees that Stalcup signed on a $346 million loan from Benefit Street, backed by 19 multifamily properties, the lender argued in court. This summer, Barry Sternlicht’s Starwood slapped Stalcup with a trio of lawsuits. The lender said the sponsor let liens pile up on several properties and failed to pay interest, triggering personal recourse guarantees. Those suits are also pending. -By Lilah Burke at The Real Deal #CommercialRealEstate

The delinquency rate of office CMBS rose to 11.7% in August, the worst ever - Wolf Street "Loans are considered “cured” and get pulled off the delinquency list when the interest gets paid; or when a deal is worked out to extend and modify a mortgage that wasn’t paid off at maturity date; or when a forbearance deal was worked out between borrower and lender; or when the loan is resolved through a foreclosure sale; or when the property is returned to the lender in lieu of foreclosure. So this process of “curing” a delinquent mortgage can mean pushing the problem into the future or taking big losses now." -wolfstreet #commercialrealestate

The retail portion of The New York Times’ former building sold for less than 10% of its previous price. Sold for $28M - a $267M haircut. Kushner Cos. paid $295M less than a decade ago for the 248K SF retail condominium at 229 W. 43rd St. The next year, it refinanced its mortgage with a $370M loan package from Deutsche Bank and SL Green. At the time, it was valued at $470M. Kushner Cos. lost it last year to foreclosure. The retail space includes the first four floors and two below-grade floors of the 18-story building. Columbia Property Trust owns the remainder of the building. -bisnow #commercialrealestate

The Condo Crash Flipping condos in Canada that don't exist. In 2022 buyer made a 10% deposit on an $855,000 pre-construction condo in Toronto. He planned to flip it before it was completed. He did not have the capability to close on the purchase. If he could not flip it and did not close, he’d forfeit his entire deposit. In 2024 the worst-case scenario became a reality. Having been unable to flip the condo his closing date arrived, and he couldn’t seal the deal. The developer, CentreCourt, kept his deposit. Then it went a step further, suing him for $860,000 in damages, interest and legal fees for breach of contract. It sold the unit to another buyer for $420,000. He is one of thousands of Canadians who have been caught in the fallout of the country’s collapsing condo market. Many are middle-class buyers who fell victim to the relentless real estate hype machine. They were told that big-city condos were a surefire place to park their money—and they were the biggest losers when the floor dropped out of the market. -macleans #commercialrealestate